Press Release Summary:
In testimony before US Senate Finance Subcommittee on Energy, Natural Resources, and Infrastructure, Stuart Thorn, president and CEO of Southwire Company, requested extension of commercial building tax deduction as included in EXTEND bills before Congress. He also advocated tax credits for purchase of NEMA PremiumÂ® efficiency motors, tax deduction for efficient outdoor lighting, accelerated depreciation of low voltage electric transmission and distribution assets, and advanced metering.
Original Press Release:
Nema Testifies Before Senate Subcommittee on Energy Efficiency Tax Provisions
ROSSLYN, Va., May 24, 2007-The National Electrical Manufacturers Association (NEMA) announced its support today for energy efficiency tax provisions in testimony before the U.S. Senate Finance Subcommittee on Energy, Natural Resources, and Infrastructure.
Speaking on behalf of NEMA, Stuart Thorn, president and chief executive officer of Southwire Company, Carrolton, Ga., requested extension of the commercial buildings tax deduction as included in the EXTEND (S. 822 and H.R. 1385) bills before Congress. He also advocated new tax credits for purchase of NEMA Premium® efficiency motors, a new tax deduction for efficient outdoor lighting, accelerated depreciation of low voltage electric transmission and distribution assets, and advanced metering.
According to Thorn, accelerated depreciation of energy efficient assets is a good means to spur investment and increase awareness of energy savings. "This current incentive has been instrumental in increasing the energy efficiency of lighting retrofits in existing buildings. NEMA believes that the period available for this incentive must be extended to provide a meaningful window for developers to undertake more energy efficient construction in significant numbers of projects."
NEMA provisions would:
o Extend the effective date of the energy-efficient commercial building tax deduction through 2012 for design certification and 2014 for construction, and adopt clarifying provisions based on implementation lessons learned since the enactment of EPAct 2005.
o Support new purchaser credits for premium efficiency electric motors which complement proposed energy efficiency standards in Senate Bill S. 1321.
o Support accelerated depreciation for electric utility distribution equipment (reduced to a 15-year tax life) and advanced metering (reduced to a five-year tax life).
o Support a performance-based tax incentive for energy efficient outdoor lighting (reduced to a three-year tax life).
NEMA worked with Congress during the development of the Energy Policy Act of 2005 (EPAct 2005) to promote a number of energy efficiency provisions. The commercial building tax deduction (EPAct 2005 Section 1331) is the first tax code provision that provides incentives for energy efficient commercial buildings.
The new subcommittee, chaired by Senator Jeff Bingaman (D-N.M.), is considering options to stimulate energy efficiency investments through tax provisions to be included in an energy bill under consideration for passage this year. All testimony from the hearing may be found at the Senate Finance Committee website finance.senate.gov/sitepages/hearing052407.htm
NEMA is the trade association of choice for the electrical manufacturing industry. Founded in 1926 and headquartered near Washington, D.C., its 430 member companies manufacture products used in the generation, transmission and distribution, control, and end-use of electricity. These products are used in utility, medical imaging, industrial, commercial, institutional, and residential applications. Domestic production of electrical products sold worldwide exceeds $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing, S£o Paulo, and Mexico City.
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